Hangzhou’s AI Boom on The New Rise of China’s ‘Six Little Dragons’

In recent years, Hangzhou has rapidly become a hub for artificial intelligence (AI) innovation in China. Central to this transformation is a dynamic group of startups known as the “Six Little Dragons”: Game Science, DeepSeek, Unitree Robotics, DEEP Robotics, BrainCo, and Manycore Tech. Each is making major advancements in fields like gaming, robotics, and software development.

Fueling Growth Through Policy and Investment

Hangzhou’s AI surge didn’t happen by accident. It’s the product of long-term government planning and proactive investment in technology. As early as the 2000s, local authorities launched initiatives like “Digital Zhejiang” and the “Eight Eight Strategy” to modernize industries and foster innovation.

In 2010, Hangzhou introduced “Project Eagle,” a startup support initiative that has been instrumental in the early development of tech firms like Unitree Robotics. More recently, the city unveiled the “Hangzhou AI Industry Chain High-Quality Development Action Plan,” aiming to certify 2,000 new high-tech enterprises and support over 300 large-scale AI projects. The city has committed approximately $40 billion annually to AI development, solidifying its ambitions to become a global AI leader.

Zhejiang University: The Talent Engine Behind the Boom

A vital driver of Hangzhou’s AI growth is Zhejiang University, one of China’s top academic institutions. The university has produced a significant share of talent leading the region’s AI revolution. By late 2024, it had contributed over 100 executives to Chinese AI startups. Notably, three of the Six Little Dragons were founded by its alumni, demonstrating how academia and entrepreneurship are working hand-in-hand.

Navigating Global Challenges

Despite Hangzhou’s success, China’s broader AI industry faces headwinds. In 2024, the country experienced its steepest drop in foreign direct investment since 1990, due in part to global economic shifts and geopolitical tensions. However, China’s domestic tech push remains strong. Tech giants like Alibaba are doubling down on AI, with leadership reaffirming major investments in generative intelligence tools and platforms.

FAQs: Hangzhou and China’s AI Ambitions

Q: Who are the ‘Six Little Dragons’ of Hangzhou?
They are six fast-rising AI startups based in Hangzhou: Game Science, DeepSeek, Unitree Robotics, DEEP Robotics, BrainCo, and Manycore Tech.

Q: What government support exists for AI development in Hangzhou?
Programs like “Digital Zhejiang,” “Project Eagle,” and the “AI Industry Chain Development Plan” provide funding, infrastructure, and policy backing to AI ventures.

Q: Why is Zhejiang University important in this ecosystem?
It’s a leading academic institution that has produced much of the talent driving Hangzhou’s AI growth, including founders of key startups.

Q: What are the main challenges facing China’s AI sector?
A major concern is declining foreign investment, influenced by geopolitical risks. Nonetheless, domestic investments continue to fuel growth.

Q: How is Alibaba contributing to AI innovation?
Alibaba has committed to major investments in generative AI technologies, signaling its strategic focus on becoming a global AI leader.

Hangzhou’s transformation into an AI innovation hub shows how coordinated policy, academic excellence, and entrepreneurial energy can converge to drive technological change. As the Six Little Dragons gain influence and scale, Hangzhou is poised to play a central role in shaping the future of global AI development.

Sources The New York Times